Czech Republic/ 4.2 Specific policy issues and recent debates

4.2.3 Cultural/creative industries: policies and programmes

Cultural and Creative Industries (CCI) are part of the State Cultural Policy for 2015-2020 and the development of a Strategy of Support for Cultural and Creative Industries is a task laid out in the new Concept of Support for the Arts. A definition of CCI has been prepared by the Ministry of Culture in a working group in connection with the use of Structural Funds in the Czech Republic in this programme’s new term.

The Czech Republic has a Culture Account which is maintained by the Czech Statistical Office (ČSÚ) in cooperation with the National Information and Consulting Centre for Culture (NIPOS) (see chapter 4.2.9, chapter 6.2.1, and chapter 6.3). The Culture Account de facto encompasses CCI as defined in the Green Paper on Cultural and Creative Industries – Unlockingthe Potential of Cultural and Creative Industries.

In the framework of cooperative work on the Mapping project by the CSO and NIPOS a "tri-sector table" was created under the Culture Account that provides a clear but, given the accessibility and accuracy of the data acquired, for the time being only rough overview of the contribution of individual cultural sectors to the data in the account.

Table 1: Tri-sector table for 2013

ex

AREA

INCOME (REVENUE TOTAL)

EXPENDITURES (COSTS) TOTAL

VALUE OF PRODUCTION (in millions of CZK)

INTERMEDIATE CONSUMPTION (in millions of CZK) 1)

GROSS ADDED VALUE (in millions of CZK) 1)

NO. OF EMPLOYEES

EXPENDITURES ON INVESTMENT

EXPORTS OF GOODS AND SERVICES

IMPORTS

NUMBER OF LEGAL AND PHYSICAL PERSONS

a

B

1

2

3

4

5

6

7

8

9

10

CULTURAL SECTOR

Cultural Heritage

16 772 722

16 678 829

13 312

4 748

8 564

18 046

1 875 857

286 288

1 055 377

7 155

Performing Arts

10 513 124

10 681 238

11 998

6 100

5 898

14 440

1 341 792

105 744

293 418

5 919

Fine Arts 3)

4 045 860

3 411 482

5 058

2 594

2 464

1 478

177 502

113 535

339 002

7 099

Arts Education

821 373

703 727

8 093

1 818

6 275

583

28 617

x

x

1 145

Crafts

792 921

753 056

763

494

269

1 636

64 993

5 728 997

2 998 620

1 000

Sector total

32 946 000

32 228 332

39 224

15 754

23 470

36 183

3 488 761

6 234 564

4 686 417

22 318

CULTURAL INDUSTRIES

Film and Video

15 490 112

15 213 824

19 479

11 574

7 905

1 466

1 234 032

12 398 888

9 354 372

1 161

Music

1 911 189

1 651 650

2 212

1 057

1 155

308

174 704

1 444 080

2 556 083

2 574

Television

4 921 536

3 687 020

4 454

1 745

2 709

1 798

120 066

7 406

8 663

60

Radio

23 178 016

24 161 064

20 983

12 273

8 710

5 582

943 446

77 464

530 857

135

Publishing

40 253 135

38 925 423

31 562

18 407

13 155

13 267

1 149 828

7 949 880

5 523 128

34 575

Video Games

1 272 546

603 253

1 181

160

1 021

195

118 624

.

.

30

Sector total

87 026 534

84 242 234

79 871

45 216

34 655

22 616

3 740 700

21 877 718

17 973 103

38 535

CREATIVE INDUSTRIES

Architecture

19 693 980

18 036 505

18 485

11 060

7 425

7 260

1 383 754

256 357

116 964

8 788

Advertising

62 332 502

59 232 830

58 031

44 229

13 802

11 991

1 910 521

10 217 023

10 483 246

8 065

Design

2 272 778

1 973 811

2 030

1 452

578

633

118 892

241 985

150 313

1 783

Sector total

84 299 260

79 243 146

78 546

56 741

21 805

19 884

3 413 167

10 715 365

10 750 523

18 636

ADMINISTRATION AND SUPPORT OF CULTURE

2 455 171

2 397 748

5 671

2 823

2 848

2 734

32 881

.

.

803

CULTURE TOTAL

206 726 965

198 111 460

203 312

120 534

80 778

81 417

10 675 509

38 827 647

33 410 043

80 292

Source: Culture Account for 2013.

1) estimated data drawn from national accounts.2) data on retail revenue relate to columns 1 to 6.3) not including design and crafts.

The Culture Account for 2009, 2010, 2011, 2012 and 2013 produced the following macroeconomic data:

Culture's contribution to total production in 2009 was an estimated 2.54% (224 816 billion CZK), its contribution to total Gross Value Added (GVA) was 2.55% (85 926 billion CZK) and to GDP was 1.79% (67.6 billion CZK). Employees in the culture sector accounted for 2.17% (83 000) of all employees in the economy in 2009.

For 2010, culture's contribution to total production was an estimated 2.49% (231 263 billion CZK), its contribution to GVA was 2.53% (86 142 billion CZK) and to GDP it was 1.56% (59.5 billion CZK). Employees in the culture sector accounted for 2.2% (84 200) of all employees in the economy in 2010.

In 2011 the contribution of culture to total production amounted to 2.2% (215.4 billion CZK), and it accounted for 2.33% (80.4 billion CZK) of GVA and 1.4% (53.1 billion CZK) of GDP. The lower GDP in relation to GVA is due to the low rate of taxes applied in the culture sector and, conversely, to the high level of subsidies for operations in this sector.

In 2012 it was indicated that the volume of production in the culture sector reached a level of 2.16% (210.9 billion CZK) and GVA was 2.38% of the total GVA generated in the economy (82.2 billion CZK). The amount of GDP generated in the culture sector can be estimated at 1.43% of total GDP (55.1 billion CZK).

From preliminary expenditures for 2013 it can be estimated that production in the culture sector amounted to 203.3 billion CZK, which is 2.11% of national production, and the total GVA amounted to 82.8 billion CZK, i.e. 2.26% of total GVA. The volume of GDP created in culture can be estimated as 55.9 billion CZK or 1.37% of total GDP.

In addition to a definition of CCI at the national level under the Culture Account, there is evidence of an attempt to define CCI at the level of the regions and municipalities of the CR in connection with efforts to map the local performance and situation of CCI. The first basic mapping, and consequently also a definition of CCI, was conducted for the Moravia-Silesia Region in connection with the candidacy of a town in that region for the European Capital of Culture in 2010. The mapping methodology was also elaborated and used in the project CreaClust, a cross-border cluster initiative for the development of creative industries in the Zlín Region (CZ) and the Trencian Region (SK), which was supported by the Structural Funds and implemented in 2011-2012. Under this project, creative industries were quantitatively mapped and a socio-geographical analysis of results was conducted (Bednář, Grebeníček, 2012). Compared to the definition applied in the Culture Account, the definition of CCI in this initiative was much broader and included significantly more categories of economic activity than that in the Culture Account. Of fundamental significance for a wider picture of performance in the CCI sector is the inclusion of production-related activities in the field of software, information technology, information activities and the press. The use of this methodology made it possible to work out an analysis of the positions of individual regions across the Czech Republic.

In February 2013 the City Development Authority of Prague, Department of Strategic Concepts, released a study that defines and maps CCI in the capital city of the Czech Republic (Němec, 2013). To analyse economic subjects operating in the City of Prague the study defined, synchronised and observed CCI branches according to CZ-NACE based on the methodology used in the CreaClust project. Rough calculations based on CSO data the wider definition of CCI branches in the 2010 study contributed almost 4.9% to GVA in the CR (cultural industries 1.9% and creative industries 3%). The economic significance of the cultural and creative sector in Prague was found to be approximately double that of the nationwide average. According to the analysis, CCI branches accounted for more than 10% of GVA in Prague and the capital city itself accounted for 53.5% of GVA in the CR created by CCI. Economically the most significant branches in Prague include selected creative activities in the field of information technology (e.g. programming), and, in the cultural sector, the creation of television and radio programmes, broadcasting and publishing activities. According to the analysis, there are a total of 37 617 local units operating in Prague in the CCI sector, which represents 12.6% of their total number in Prague. In Prague CCI are of extraordinary significance both in economic terms (measured as a share of GVA) and in terms of employment. The workplaces of the economic subjects included in the analysis in Prague employ almost 125 000 people, which is an estimated 14% of the total workforce in Prague.

Within the Mapping project or in collaboration withotherpartner organisationsother important surveys have been and are being carried out – mappings at the local and regional level of the Czech Republic (Zlín, Brno, Pardubice, Pilsen). These surveys have pursued different objectives depending on local needs; in the cases of Brno and Pilsen the mapping was done in connection with the foundation of Creative Centres in those cities, while in other towns it was connected more to the need for development strategies. The goal of the Mapping project was to use these pilot mapping projects to formulate a uniform methodology for mapping CCI.

As part of the Mapping project, and in cooperation with Zlín, Zlín Region, TomášBaťa University in Zlín, the Regional Chamber of Commerce of the Zlín Region and Central Tourism Offices of Eastern Moravia, a pilot project was implemented to qualitatively map tourism in Zlín andZlín Region. The project report and recommendations drawn up by Lia Ghilardi, an expert from abroad, are published at:http://www.idu.cz/cs/kvalitativni-mapovani-mesta-zlina-a-zlinskeho-kraj.

In 2013/2014 a detailed mapping of CCI was implemented in Brno, the second-largest city in the Czech Republic. In a feasibility study of the objectives of the Creative Centre in Brnoa quantitative and qualitative analysis of CCI was performed, profiles of individual branches were drawn up, and a summary SWOT analysis was done to provide a picture of the state of CCI in Brno. The area around the local penitentiary, which is to be turned into a cultural centre, was explored and the DNA of the location was put together. The full feasibility study, prepared with assistance from the Mapping project, can be found at: http://www.kreativnibrno.cz/studie-proveditelnosti.

Some mapping will also be carried out in the town of Pilsen as part of its programme as the European Capital of Culture 2015 and in connection with the intention to create a local creative incubator. Other projects connected with the concept of CCI are also being prepared as part of Pilsen’s programme as Capital of Culture 2015 (for instance, a project of cooperation between artists and business people developed in collaboration with the Swedish organisation TILLT; the EverFund project focused on a new method of financing cultural projects and educational courses in the areas of cultural management and marketing).

The activities mentioned above show that the awareness of the contribution of CCI to economic growth and social development in the CR is increasing and there is a rising interest in mapping and adopting strategic measures in support of CCI in the CR at the state and regional levels.

In this respect it can be noted that there has been an increase is the interest of ministries (Ministry of Education, Ministry of Industry and Trade, and Ministry for Regional Development) and regional and municipal authorities. On the regional level, for instance, specific projects for creating creative centres/incubators are developing in connection with the use of Structural Funds.

In terms of specific measures and individual branches of CII in the CR, the Ministry of Culture possesses traditional instruments of support such as grants supporting the publication of books by Czech authors abroad and ensuring Czech participation in fairs and festivals abroad, and so forth. Other measures can also be identified in connection with support for CCI.

The film industry can boast the best social status and strategic approach in the CR (see chapter 4.2.11, chapter 4.3, chapter 5.1.5, and chapter 6.2.3). With the adoption of the Act on Audio-visual Works and Support for Cinematography (at the end of 2012) the State Cinematography Fund was transformed and now represents a complex and very well-structured and transparent support system with clear criteria and one that is moreover not dependent solely on the state budget. In the future it expects income in the area of approximately 0.5 billion CZK annually, of which 150 million CZK should come from the 2% of revenue generated by advertising on commercial television, 10 million CZK from the 1% of every admission ticket to a cinema, 40 million CZK from the use of works created between 1965 and 1991 which the fund holds the rights to, 10 million CZK from audio-visual services on command (starting in 2016), 25 million CZK from fees equal to 1% of the price of providing a rebroadcast television broadcast. The state budget will inject more finance into the fund to support Czech cinematography and for the administration of the fund as well as subsidies for incentives in the film industry. Film-industry incentives in operation in the CR since 2010 allow producers to recoup one-tenth of their expenditures for foreign actors and crew members and one-fifth of goods and services costs. These incentives draw large foreign production companies and international stars to the Czech Republic. They take into account the exponential economic impact of the local expenditures of foreign crews that spend money in the CR on film shoots, accommodation, restaurants, transport, and renting locations, etc., and for 2013 the state set aside a record 500 million CZK for incentives and in 2014 as much as 800 million CZK. The fund's website is: http://www.fondkinematografie.cz/.

Among other specific strategies and programmes perhaps the only one to mention is support in the field of design. Support for industrial design falls within the portfolio of the governmental agency CzechTrade, which since 2008 has run a project called “Design for Export” aimed at an individual consultation service. During its existence approximately 100 Czech manufacturers have made use of the programme’s services, while the programme’s annual budget in 2008–2010 was just under 4 million CZK. There is currently a follow-up programme titled“Design for Competitiveness”, which supports: individual cooperation with an individually chosen designer from the innovatedDirectory of Designers of CzechTrade, which is now also open to designers from the EU; the possibility to obtain support for up to 100% of eligible expenditures, with a maximum awardable sum of support of 56 000 CZK; the promotion of industrial design at the Maison&Objetfair in Paris in the form of a joint exhibition in the now! design á vivre section; educational services focusing on design management and the effective management of innovative processes and providing an information service (in the form of a newsletter). The programme is funded from the Structural Funds (seehttp://www.czechtrade.cz/programy-eu/projekty-czechtrade/design/).

CzechTradealso supports the promotion of Czech businesses at selected exhibitions and fairs abroad. In addition, the Ministry of Industry and Trade (MIT) runs the programme for the Czech Republic's official participation in international fairs and exhibitions abroad and in 2010 a joint project of the MIT, CzechTrade and the Czech Chamber of Commerce was launched titled "Joint Participation in Specialised Exhibitions and Fairs Abroad".

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